Digital Ad Revolution: South Korea’s Online Ad Spend Breaks Records, Netflix Claims OTT Crown
Seoul, South Korea – The advertising landscape in South Korea is undergoing a seismic shift, with online advertising expenses surging past the 10 trillion KRW (approximately $8.1 billion USD) mark for the first time ever. This dramatic increase signals a fundamental change in how businesses reach consumers, as traditional broadcast advertising continues its structural decline. This breaking news, coupled with emerging trends in AI-powered shopping and immersive advertising, demands immediate attention for marketers and industry observers alike. This is a pivotal moment for SEO strategies and digital marketing as a whole.
Online Advertising Takes the Lead, Broadcast Struggles
According to recent data, 2024 saw online advertising costs reach 10.1011 trillion KRW, fueling the growth of the domestic advertising market. Conversely, broadcast advertising experienced a 5% decrease, totaling 3.2191 trillion KRW. Newspapers and magazines also saw a 1.9% dip to 1.9875 trillion KRW, while outdoor advertising showed a modest 3.1% increase to 1.2591 trillion KRW. This isn’t just a temporary fluctuation; it’s a clear indication of consumer behavior migrating online. For years, industry analysts have predicted this shift, but the speed and scale of the change are now exceeding expectations. Understanding these trends is crucial for businesses aiming to maximize their return on investment.
Netflix Dominates the Emerging OTT Advertising Market
As online advertising budgets swell, Over-The-Top (OTT) platforms are becoming increasingly attractive to advertisers. Netflix is currently the frontrunner, with a remarkable 65% of advertisers planning OTT campaigns preferring the streaming giant. Advertisers are drawn to Netflix’s precision targeting capabilities and its powerful media reach. Interestingly, half of the companies surveyed have already run ads on both Netflix and traditional TV, demonstrating a strategic blend of platforms. This highlights the importance of a multi-channel approach in today’s fragmented media environment. The rise of OTT advertising presents a significant opportunity for brands to connect with audiences in a more engaging and personalized way.
AI-Powered Shopping: Naver Boosts Small Business Sales
The impact of Artificial Intelligence (AI) on e-commerce is becoming increasingly evident. Naver’s AI shopping guide is demonstrably improving performance for businesses of all sizes. Small businesses experienced a 16.5% sales increase after implementing the AI, followed by medium-sized businesses at 10.2% and large businesses at 6.7%. Small-scale sales volume saw the highest boost, at 35.9%. Naver Plus Store, enhanced with AI, is proving to be a valuable tool for small business owners, streamlining product discovery, comparison, and purchasing. This trend underscores the growing importance of AI in leveling the playing field for smaller retailers and enhancing the overall customer experience. This is a key area to watch for future Google News coverage.
Generation Z & Alpha: Roblox Pioneers Interactive 3D Ads
Reaching younger demographics requires innovative advertising strategies. Roblox is stepping up to the challenge, strengthening its advertising platform to target Generation Z and Alpha. At CES 2026, they unveiled a CPM-based ‘Premium Homepage’ advertisement that transforms video ads into interactive 3D experiences upon click. Currently in beta testing, this immersive format is designed to capture the attention of digitally native audiences. Roblox is also expanding programmatic advertising through partnerships with Amazon DSP and Liftoff. This move signals a broader trend towards more engaging and interactive ad formats, particularly within gaming and virtual worlds.
AI Competition Heats Up: Gemini Challenges ChatGPT’s Dominance
The AI landscape is becoming increasingly competitive. While ChatGPT initially dominated the market, Google’s Gemini is rapidly gaining ground. As of December 2025, ChatGPT web traffic decreased by 5.6%, while Gemini experienced a remarkable 28.4% increase, boasting an annual growth rate of 563% compared to ChatGPT’s 49.5%. OpenAI CEO Sam Altman has acknowledged the intensifying competition and is actively refining his company’s strategy. This rivalry is driving innovation and ultimately benefiting consumers with more powerful and accessible AI tools.
11th Street Revamps Strategy, Prioritizes Search
E-commerce platform 11th Street is undergoing a significant transformation, shifting towards a search-centric sales structure. The company is streamlining its ‘Shocking Deals’ discount corner, shortening the price comparison window from 60 days to 30 days for faster responsiveness. Additionally, the new product review group is being reorganized into an ‘experience group’ to accelerate the accumulation of valuable customer reviews. These changes are part of a broader strategy to enhance profitability and system efficiency, demonstrating a commitment to adapting to evolving consumer expectations.
Spotify Challenges YouTube with Video Expansion
Spotify is aggressively expanding its video offerings, directly challenging YouTube’s dominance in the video streaming space. Leveraging the growing popularity of video podcasts, Spotify is lowering monetization thresholds for creators and directly compensating premium users for ad-free viewing. The platform is also introducing dedicated studios and sponsorship tools to attract content creators and increase user engagement. This move positions Spotify as a serious contender in the video market, offering a compelling alternative to YouTube for both creators and viewers.
The Korean advertising market is a fascinating microcosm of global trends. The relentless march of digital, the power of AI, and the evolving preferences of younger generations are all reshaping the industry. Staying informed about these developments is no longer a luxury – it’s a necessity for any business seeking to thrive in the modern digital economy. For more in-depth analysis and breaking news, continue to check back with Archyde for the latest insights.
